AgFeed has two main business lines - premix animal feed and hog
production.

The company sells its premix feed products directly to large
commercial hog farms and through an independently owned chain store distribution
network targeting the vast individual backyard hog market. Approximately 75% of
China's total 600 million annual hog production is from individual backyard hog
farmers.

AgFeed aims to have 1,000 independently owned chain stores by
year - end 2008. Approximately 65% of AgFeed's total premix feed sales are
generated through such retail channels.